LandInvestors.com Forums **Ask A Question** Good deal or not?

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  • #4396

    Hobart King
    Participant
    Post count: 12

    Here’s the situation, I have a guy who responded to one of my craigslist adds a few month ago who rejected my lowball offer come back to me and say that he really wants to unload the property. It is two adjacent parcels in Lima, OH that are just under half an acre each. The owner obtained these two parcels at a tax sale a few years ago and they are both current in taxes (~$500 combined).

    Here are links to the parcels:

    http://allencountyohpropertytax.com/Property.aspx?mpropertynumber=46-0303-01-037.000&mtab=property&p=46030301037.000

    http://allencountyohpropertytax.com/Property.aspx?mpropertynumber=46-0303-01-038.000&mtab=property&p=46030301038.000

    The owner said something about there being a slope on the properties and needing to work with engineers to build on it which scares me a little bit. The slope isn’t apparent from google maps although the parcels are heavily wooded but have houses on either side and a lake the next street over. Area looks to be well to do. Looking on Landwatch, there are 10 or so vacant lots listed for 14k each in Lima, OH.

    One thing I am worried about is the fact that the owner obtained the deed at a tax sale. Does that mean he will only be able to issue a quit-claim deed assuming he hasn’t done a quiet title action?

    I have sent out emails to agents that have land listed in the area and am waiting on a response. I offered the guy $1000 for both last time but might go even lower if I make another offer. Best case scenario would be one of the people who has land in the area is interested and buys it and I get a commission. Am I missing anything?

Viewing 4 replies - 1 through 4 (of 4 total)
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  • Josh Brooks
    Member
    Post count: 51

    If I had a deal where comparable listings were showing good support at $14K each, I would offer $1,750 each and sell them for cash at $6,750 each.

    Ryan
    Participant
    Post count: 38

    So I got my 1st offer accepted.

    Is This a good deal or not?

    It is in Mohave AZ. Here are my numbers.

    Parcel Size 2.35 acre
    Taxes owed:$39.05
    Land Watch Sale Comps: $1750-$3,500
    My Purchase price:$125
    My Sale Price:$1,250

    Parcel Size 1.14 acre
    Taxes owed:$26.81
    Land Watch Sale comps: $3,500-$8,000
    My Purchase Price:$200
    My Sale Price:$2,495

    Parcel Size 1.13 acre
    Taxes owed:$58.60
    Land Watch Sale Comps: $3,500 – $8,000
    My Purchase price:$300
    My Sale Price:$2,995

    Parcel Size 0.21 acre
    Taxes owed:$121.83
    Land Watch Comps:$12,900- $17,900
    Zillow comps:$9,500-15,000
    My Purchase price:$1,000
    My Sale Price:$8,995

    Parcel Size 5.00 acre
    Taxes owed:$73.85
    Land Watch Comps:$5,000 – $8,500
    My Purchase price:$513
    My Sale Price:$4,495

    Parcel Size 10.00 acre(no road access)
    Taxes owed:$77.44
    Comps:$2995 – $9,000
    My Purchase price:$300
    My Sale Price:$2,495

    Parcel Size 1.00 acre
    Taxes owed:$209.62
    Comps:$4,000 – $10,000
    My Purchase price:$500
    My Sale Price:$3,495

    Parcel Size 1.00 acre
    Taxes owed:$83.55
    Land Watch Comps:$2,900 – $10,000
    My Purchase price:$300
    My Sale Price:$1,995

    Parcel Size 1.00 acre
    Taxes owed:$83.55
    Land Watch Comps:$2,900 – $10,000
    My Purchase price:$300
    My Sale Price:$1,995

    Parcel Size 0.33 acre
    Taxes owed:$107.09
    Land Watch Comps:$5,000 – 34,000
    Zillow Comps: $9500 – $15,000
    My Purchase price:$300
    My Sale Price:$3,995

    Parcel Size 0.48 acre
    Taxes owed:$122.24
    Land Watch Comps:$4,500 – $19,500
    Zillow Comps: $4,500 – 20,000
    My Purchase price:$399.5
    My Sale Price:$3,495

    Parcel Size 0.48 acre
    Taxes owed:$122.24
    Land Watch Comps:$4,500 – $19,500
    Zillow Comps: $4,500 – 20,000
    My Purchase price:$399.5
    My Sale Price:$3,495

    Total Purchase price: $4637
    Taxes I pay:$1,188.55
    My total Purchase price: $5825.55

    Total sale price: $41,195(at half= $20597.5)

    Ryan
    Participant
    Post count: 38

    @24jbrooks, It looks good to me as long as the $14,000 was the low end of your comps range. I am just starting out but from what I understand from the material it looks good.

    Josh Brooks
    Member
    Post count: 51

    @hutch

    Nice list of properties. I would be all over these.

    Congratulations, I am envious.

    Feel free to call if you find yourself with too much inventory.

    Josh
    928.420.4035
    24jbrooks@gmail.com

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